May 2009 Financial News

Decline in manufacturing forecasted

May 05, 2009

OUTPUT in the manufacturing sector is expected to follow its performance in the first quarter this year by registering an overall decline for 2009.

This is according to the outlook presented by the Governor of the Central Bank of Barbados (CBB), Dr. Marion Williams, who delivered her quarterly review of the economy last Thursday.

During January to March the sector registered an estimated 6.6 per cent reduction in output, which was said to be largely the result of declines in the production of food, non-metallic products and garments.

According to the Governor’s review, “the economic downturn, along with intensified competition from the extra-regional sources, contributed to a 13.6 per cent fall-off in food production”.

It was stated that the output of non-metallic mineral products decreased as a consequence of a 4.6 per cent decline in construction activity, which was seen to be predicated on the fact that their was a slowdown in tourism activity, leading to a fall-off in new commercial and residential real-estate activity.

2.2 per cent declines were recorded in both the garments and wooden furniture subsectors, while the production of miscellaneous manufacturing industries fell by 5.5 per cent.

The subsectors of chemicals, beverages and tobacco, and electronics, were the areas in which marginal to moderate increases were recorded.

This increase in chemical manufacturing output follows a 5.2 per cent decline in output and a decline in export revenue for this subsector for the 2008 financial year, where there was a $7,813,000 drop in the sale of Chemicals abroad.

This was not the same for electronics however, as electronic components saw an increase in export revenue in 2008 from $21,627,000 to $23,751,000.

During 2008 manufacturing output declined by 0.4 per cent for the year, following a decrease of 2.9 per cent in 2007, and an increase of 1.1 per cent in 2006.

The 2009 first quarter declines in the output of non-metallic mineral products, furniture production, and miscellaneous manufacturers, followed overall declines in these subsectors for 2008.

Conversely, January to March’s significant decline in food production came after a 1.6 per cent increase during 2008. (RH)


Source:
Barbados Advocate
Tuesday May 5, 2009

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=3470